Tata Steel to get 500 million euros from Britain for decarbonisation of Port Talbot

18 Sep 2023 , 09:30 AM

After months of negotiating to save the project, the UK government has agreed to offer Tata Steel a £500 million grant to help it decarbonize its Port Talbot project in Wales, the firm announced in a statement on September 15.

Tata Steel and the UK government announced a collaborative agreement to invest in state-of-the-art Electric Arc Furnace steelmaking at the Port Talbot site for £1.25 billion, including a £500 million government subsidy. During early negotiations, Tata Steel requested a larger payment from the government to assist the project.

According to Tata Steel, the project is still subject to all appropriate information and consultation processes before any decisions are taken. It is envisaged that this new investment project might be operational within 36 months of receiving applicable regulatory and planning clearances, subject to informing and consulting.

Port Talbot currently employs approximately 4,000 people, accounting for half of Tata Steel’s employment in the UK. The corporation previously stated that even with government assistance, it may be forced to lay off up to 3,000 workers at the plant.

Tata Steel stated that the proposed project would also include a restructuring of Tata Steel’s balance sheet, with the potential elimination of existing cash losses in the UK business and non-cash impairment of legacy investments.

During the transition time and project phase, Tata Steel UK would work intensively to maintain an uninterrupted and consistent supply of products in order to meet customer and market commitments, including by importing additional steel substrates from stable supply chains to feed its downstream units.

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